Hedge Accounting and Quarter End Valuation
As the quarter-end nears, it is crucial to ensure that your Hedge positions are properly reflected in your Financial Statements to maintain accuracy and minimize P&L volatility.
Hedge Accounting with QuantArt
Hedge Accounting is essential for aligning your financial reporting with your risk management strategies, especially when dealing with complex financial instruments like derivatives. Without proper hedge accounting, companies may face significant P&L swings due to market movements, even though these hedges are intended to offset underlying exposures.We at QuantArt will help you address these:-
We ensure your derivatives are properly classified and valued on the balance sheet, whether you’re dealing with fair value hedges, cash flow hedges, or net investment hedges.
We help you perform hedge effectiveness tests to ensure your hedging relationships qualify for hedge accounting, reducing the risk of accounting mismatches.
Using advanced market-driven valuation techniques, we assist in determining the fair value of your derivative instruments for reporting purposes.
Our solutions ensure that your hedge accounting practices are fully compliant with accounting regulations, providing transparent reporting and disclosures.
Hedge Accounting Video Series
Our exclusive video series breaks down the complexities of Hedge Accounting, Financial Risk Management, and Derivative Accounting into easy-to-follow steps. Each short video provides practical insights on essential topics such as FX hedging, Forward Contracts, Hedge Documentation, and Interest Rate Swaps. Whether you’re looking to navigate the intricacies of Hedge Accounting or manage long-term financial risk, our videos are designed to equip you with the expert knowledge and real-world applications needed to make informed, confident decisions.
Hedge Accounting in India
Managing ECB Hedge Volatility Navigating Fair Value Accounting Challenges
Hedge Accounting Explained Principles, Cash Flow, and Fair Value Hedges
Steps to Implement Hedge Accounting A Comprehensive Guide
Advantages of Hedge Accounting with QuantArt
QuantArt’s team of seasoned experts brings decades of experience in hedge accounting, ensuring that your financial reporting is aligned with global standards such as IFRS and US GAAP. Our professionals provide tailored solutions that minimize P&L volatility, optimize risk management strategies, and enhance transparency in financial statements. With deep expertise in complex financial instruments and derivatives, QuantArt helps businesses navigate the intricacies of hedge accounting with precision and confidence.
QuantArt’s leadership team of Treasury Champions brings unparalleled expertise in delivering high-quality Hedge Accounting solutions. Their deep knowledge of Derivative Instruments and Risk Management ensures that your Hedging Strategies are accurately reflected in compliance with Global Standards. With a focus on minimizing volatility and enhancing financial transparency, QuantArt’s leadership provides the strategic guidance needed for exceptional hedge accounting performance.
QuantArt offers Hedge Accounting solutions at unbeatable prices, ensuring top-tier service without compromising on quality. Our comprehensive solutions are designed to meet Global Standards, providing precise Financial Reporting and minimizing P&L volatility. With our unbeatable pricing, you get exceptional value, making it easier to optimize your Hedging Strategies and enhance Financial Transparency without overstretching your budget.
QuantArt operates extensively in global markets, giving us a holistic perspective on market trends and risks. This global insight allows us to provide tailored hedge accounting solutions that consider both local nuances and international market dynamics. Our deep understanding of diverse market conditions ensures that your financial strategies are optimized across all regions.
QuantArt combines global insights with localized expertise, ensuring our solutions are tailored to meet specific regional market conditions and regulatory requirements. Our deep understanding of local financial landscapes allows us to provide precise hedge accounting strategies that align with your unique business needs. This localized approach ensures that your hedging solutions are both effective and compliant, no matter where you operate.
We provide expert guidance on which hedge accounting findings to implement, ensuring your decisions are informed and aligned with your financial goals.
Our Trainers
Samir Lodha
Managing Director
Srinivas Puni
Managing Partner
Vinod Garg
Managing Partner
Sandip Basu
Managing Partner
Samir Lodha founded QuantArt in 2012 January which has been running for the last 10 years. He is an MBA from the Indian Institute of Management Calcutta (IIMC) and has around 20 years of experience in Forex and Interest rate risk management. Prior to that, he had worked in senior positions with foreign exchange treasuries of JP Morgan (Executive Director), HSBC (Associate Director), and ICICI Bank wherein he advised large companies across India on risk management and hedging of foreign exchange and interest rates exposures. He has significant experience in Fx and rate markets along with a sound experience and understanding of global markets, market economics, hedging strategies, hedge algorithms, price calculation, and risk-return optimization.
Srinivas Puni is an MBA from the Indian Institute of Management Bangalore (IIMB) with over 15 years of experience in structuring forex and interest rates derivatives. He has worked with banks like JP Morgan, Standard Chartered, Yes Bank, and Axis Bank in the past. He conducts training on foreign exchange and risk management as well as advises specifically large clients. Srinivas has an in-depth understanding of the quantitative models behind derivative valuation and related CVA, DVA, FVA modeling. He specifically handles pricing, valuations, structuring, risk modeling etc
Vinod is an MBA from IIM Lucknow with 20+ years of experience in treasuries in India and Hong Kong wherein he advised large companies and banks on risk management, markets, and hedging. Prior to joining QuantArt, he held the positions of Executive Director in Goldman Sachs and BNP Paribas. Vinod has extensive skills in simplifying complex situations and convert the same into a hedge opportunity.
Sandip is a post graduate from BITS Pilani with 25+ years of experience in global markets. He began his banking career with SBI and thereafter held leadership position at treasury at American Express Bank, Deutsche Bank and ICICI Bank in India. He was an investment banker for 7 years covering areas including PE intermediation, debt syndication and FX advisory. Sandip was Chief Treasury for Tata Steel Group between 2014-2020, where he led a large team with distinction in hedging currency, interest rates and commodity, investment of surplus funds, retirals investment, working capital management,RBI regulations etc.
Samir Lodha
Managing Director
Samir Lodha founded QuantArt in 2012 January which has been running for the last 10 years. He is an MBA from the Indian Institute of Management Calcutta (IIMC) and has around 20 years of experience in Forex and Interest rate risk management. Prior to that, he had worked in senior positions with foreign exchange treasuries of JP Morgan (Executive Director), HSBC (Associate Director), and ICICI Bank wherein he advised large companies across India on risk management and hedging of foreign exchange and interest rates exposures. He has significant experience in Fx and rate markets along with a sound experience and understanding of global markets, market economics, hedging strategies, hedge algorithms, price calculation, and risk-return optimization.
Srinivas Puni
Managing Partner
Srinivas Puni is an MBA from the Indian Institute of Management Bangalore (IIMB) with over 15 years of experience in structuring forex and interest rates derivatives. He has worked with banks like JP Morgan, Standard Chartered, Yes Bank, and Axis Bank in the past. He conducts training on foreign exchange and risk management as well as advises specifically large clients. Srinivas has an in-depth understanding of the quantitative models behind derivative valuation and related CVA, DVA, FVA modeling. He specifically handles pricing, valuations, structuring, risk modeling etc
Vinod Garg
Managing Partner
Vinod is an MBA from IIM Lucknow with 20+ years of experience in treasuries in India and Hong Kong wherein he advised large companies and banks on risk management, markets, and hedging. Prior to joining QuantArt, he held the positions of Executive Director in Goldman Sachs and BNP Paribas. Vinod has extensive skills in simplifying complex situations and convert the same into a hedge opportunity.
Sandip Basu
Managing Partner
Sandip is a post graduate from BITS Pilani with 25+ years of experience in global markets. He began his banking career with SBI and thereafter held leadership position at treasury at American Express Bank, Deutsche Bank and ICICI Bank in India. He was an investment banker for 7 years covering areas including PE intermediation, debt syndication and FX advisory. Sandip was Chief Treasury for Tata Steel Group between 2014-2020, where he led a large team with distinction in hedging currency, interest rates and commodity, investment of surplus funds, retirals investment, working capital management, RBI regulations etc.
Why Hedge Accounting
Hedge accounting is an essential financial practice for companies using derivatives to manage risks like currency fluctuations, interest rates, and commodity prices. It bridges the gap between economic hedging activities and financial reporting, ensuring that the financial impact of these strategies is accurately reflected in a company’s statements. Implementing hedge accounting not only minimizes P&L volatility but also provides clarity, regulatory compliance, and a competitive edge.
Need and Advantages for Hedge Accounting
Hedge accounting helps offset the gains and losses between the hedge and the hedged item, reducing unpredictable swings in your P&L and providing financial stability.
It ensures that financial statements reflect the true economic impact of hedging activities, aligning accounting outcomes with real-world risk management efforts.
Adhering to global accounting standards like IFRS 9 and US GAAP, hedge accounting ensures that companies meet regulatory requirements, complete with necessary documentation, testing, and disclosures.
Hedge accounting allows for regular effectiveness testing and performance tracking, enabling companies to ensure their hedging strategies are working as intended. This leads to better decision-making in managing market risk exposures.
It smooths earnings over time by aligning the timing of gains and losses on both the hedging instrument and the hedged item, preventing large, unexpected financial swings.
By providing clear insights into hedge effectiveness and the costs associated with these strategies, hedge accounting enables companies to make informed decisions about how to adjust their risk management strategies for optimal performance
Transparent, consistent financial performance helps build trust with investors and stakeholders, enhancing the company’s credibility in the market.
Stabilizing earnings and protecting profit margins through effective hedge accounting provides businesses with a competitive edge, allowing them to maintain competitive pricing, control risks, and focus on growth.